EPACK Durable Ltd — Q4 FY26 earnings call
Summary generated by AI from the official transcript EPACK Durable Ltd filed with BSE on 27 May 2026. Every statement cites a verbatim quote from that document — open any citation to read it. This is a record of what management said, not a recommendation. How we check these summaries
The short read
EPACK Durable reported Q4 FY26 revenue of Rs. 591 crore, down about 8% year-on-year, with EBITDA of Rs. 25.8 crore and EBITDA margin of 4.37% against 11.21% a year earlier, largely due to a reversal of previously recognized PLI income of Rs. 32.42 crore. Management said the RAC segment declined around 25% year-on-year in the quarter due to BEE norm changes, elevated channel inventory and higher discounting, while the SDA/LDA and components businesses grew approximately 53% and 50% year-on-year respectively. The company also recognized Rs. 21.78 crore of RIPS incentive income during the quarter and said the Hisense joint venture facility became operational in Q4 FY26.
Numbers mentioned
Revenue from operations: Rs. 591 crore (Q4 FY26)
p. 3
“revenue from operations stood at Rs. 591 crore, which declined by around 8% on year-on-year basis”
Rajesh Kumar Mittal, page 3 of the filed PDF · View the filing
EBITDA: Rs. 25.8 crore (Q4 FY26)
p. 3
“The EBITDA for the quarter was Rs. 25.8 crore, decreased by around 64.2% year-on-year basis”
Rajesh Kumar Mittal, page 3 of the filed PDF · View the filing
EBITDA margin: 4.37% (Q4 FY26)
p. 3
“The EBITDA margin reported at 4.37% as against 11.21%.”
Rajesh Kumar Mittal, page 3 of the filed PDF · View the filing
Net profit: Rs. 2.4 lakh (Q4 FY26)
p. 3
“The net profit was Rs. 2.4 lakh.”
Rajesh Kumar Mittal, page 3 of the filed PDF · View the filing
Revenue from operations: Rs. 1,894 crore (FY26)
p. 3
“Revenue from operations stood at Rs. 1,894 crore, which declined by 12.7% on year-on-year basis.”
Rajesh Kumar Mittal, page 3 of the filed PDF · View the filing
EBITDA: Rs. 113.9 crore (FY26)
p. 3
“The EBITDA for the year was Rs. 113.9 crore, decreased by around 27.7% year-on-year basis.”
Rajesh Kumar Mittal, page 3 of the filed PDF · View the filing
EBITDA margin: 6.01% (FY26)
p. 3
“The EBITDA margin reported at 6.01% as against 7.26%.”
Rajesh Kumar Mittal, page 3 of the filed PDF · View the filing
Net profit: Rs. 3.3 crore (FY26)
p. 3
“The net profit was Rs. 3.3 crore.”
Rajesh Kumar Mittal, page 3 of the filed PDF · View the filing
RIPS incentive income recognized: Rs. 21.78 crore (Q4 FY26)
p. 3
“the company has recognized incentive income amounting to Rs. 21.78 crore under the RIPS 2024 scheme based on the management assessment of compliance with the”
Rajesh Kumar Mittal, page 3 of the filed PDF · View the filing
PLI income reversed: Rs. 32.42 crore (Q4 FY26)
p. 4
“the company reversed previously recognized PLI income amounting to Rs. 32.42 crore accrued during the nine months ended December 31, 2025.”
Rajesh Kumar Mittal, page 4 of the filed PDF · View the filing
New customer additions: 17 during FY26, total active base 72 (FY26)
p. 4
“taking our overall customer additions to 17 during FY26, and our total active customer base to 72.”
Ajay DD Singhania, page 4 of the filed PDF · View the filing
RAC segment decline: approximately 25% (Q4 FY26)
p. 4
“While RAC segment witnessed approximately 25 year-on-year decline during the quarter”
Ajay DD Singhania, page 4 of the filed PDF · View the filing
SDA and LDA segment growth: approximately 53% (Q4 FY26)
p. 4
“The SDA and LDA segment delivered robust growth of approximately 53% Y-o-Y”
Ajay DD Singhania, page 4 of the filed PDF · View the filing
Component business growth: approximately 50% (Q4 FY26)
p. 4
“Our component business also delivered strong performance with approximately 50% Y-o-Y growth during the quarter”
Ajay DD Singhania, page 4 of the filed PDF · View the filing
Q4 FY26 capex: approximately Rs. 79 crore (Q4 FY26)
p. 5
“During Q4 FY26 alone, we incurred a CAPEX of approximately Rs.79 crores, primarily towards washing machine capacity expansion and component manufacturing capabilities.”
Ajay DD Singhania, page 5 of the filed PDF · View the filing
Inventory: Rs. 837 crore (as of March 2026)
p. 7
“Also, my third question, I think we have seen a sharp increase in the inventory levels, nearly 837 crores.”
Bala Subramanian, page 7 of the filed PDF · View the filing
Total CAPEX capitalized to date: Rs. 300 crore (cumulative to March 2026)
p. 10
“out of which Rs. 300 crores is what we have capitalized till end of March.”
Ajay DD Singhania, page 10 of the filed PDF · View the filing
Total planned CAPEX: approximately Rs. 470 crore (18 to 24 months)
p. 10
“we had budgeted a total CAPEX of approximately Rs. 470 crores in 18 to 24 months”
Ajay DD Singhania, page 10 of the filed PDF · View the filing
Current debt level: Rs. 700 crore (FY26 year end)
p. 19
“Current debt level is around Rs. 700 crore, which includes a term loan of Rs. 200 crore.”
Rajesh Kumar Mittal, page 19 of the filed PDF · View the filing
Disputed trade receivable: Rs. 19.61 crore
p. 15
“this especially pertains to one of the cases wherein the receivable is from a customer called Gangnam from Rs 19.61 crores, which is currently or has not been paid by these.”
Ajay DD Singhania, page 15 of the filed PDF · View the filing
Asset turn: 2.6, down from 3.2 (FY26 vs FY25)
p. 14
“Compared to FY25, wherein the asset turn was approximately 3.2, in the current FY26, it has deteriorated to almost 2.6 around.”
Ajay DD Singhania, page 14 of the filed PDF · View the filing
Epavo JV total investment: almost Rs. 100 crores
p. 21
“So, regarding the JV company Epavo, yes, the total investment today currently stands at almost Rs. 100 crores.”
Ajay DD Singhania, page 21 of the filed PDF · View the filing
PLI incentive eligibility for FY26: Rs. 56.5 crore (FY26)
p. 14
“the total eligibility for financial year was roughly Rs. 56.5 crores, of which we had only accrued roughly Rs. 32 crores”
Ajay DD Singhania, page 14 of the filed PDF · View the filing
What management said it would do
A record of statements made on the call, in the words management used. Parakho does not forecast, endorse or assess them, and their presence here is not a view on whether they will happen.
CAPEX — Rs. 170-200 crore · next 9 to 12 months
stated firmly by Ajay DD Singhania
p. 10
“So, this is something we would say Rs. 170-200 odd crores is something which is planned over next 9 to 12 months, I mean, the rest of this financial year.”
Ajay DD Singhania, page 10 of the filed PDF · View the filing
Revenue — Rs. 5,000 crores · next two to three years
stated as an aspiration by Ajay DD Singhania
p. 13
“we still believe that our vision of achieving Rs. 5,000 crores around in the next two to three years is something which is definitely achievable, and this is what we strive for.”
Ajay DD Singhania, page 13 of the filed PDF · View the filing
Asset turn — around 4 · medium to longer term
stated as an aspiration by Ajay DD Singhania
p. 14
“we are looking to achieve around asset turn of 4 in the medium to longer term.”
Ajay DD Singhania, page 14 of the filed PDF · View the filing
Industry/company growth — approximately 15% · Q1 FY27
stated conditionally by Ajay DD Singhania
p. 8
“a growth of 15% approx is what the industry is expecting at least in this Q1. And definitely, EPACK believes that this is in line with our internal expectations as well.”
Ajay DD Singhania, page 8 of the filed PDF · View the filing
Normalized material margin — 13% to 14%
stated conditionally by Ajay DD Singhania
p. 22
“we expect the normalized material margin of roughly the historical 13% to 14% is what has been the historical margin, which will then slowly and gradually start improving”
Ajay DD Singhania, page 22 of the filed PDF · View the filing
Normalized EBITDA margin — around 7%
stated conditionally by Ajay DD Singhania
p. 22
“So, 13% to 14% gross margins and around 7% of EBITDA, normalized EBITDA is what the company is expecting and to improve.”
Ajay DD Singhania, page 22 of the filed PDF · View the filing
PLI incentive eligibility for FY27 — Rs. 60 crore · FY27
stated conditionally by Ajay DD Singhania
p. 21
“the company is eligible to receive an incentive of Rs. 60 crores, for which there were two criteria, the CAPEX of Rs. 300 crores, which has already been completed successfully.”
Ajay DD Singhania, page 21 of the filed PDF · View the filing
Epavo JV profitability — break even/profitable · FY27-28
stated as an aspiration by Ajay DD Singhania
p. 21
“from FY 27-28 onwards, we will definitely see this company in green.”
Ajay DD Singhania, page 21 of the filed PDF · View the filing
Front load washing machine production commencement — mid of Q2
stated firmly by Ajay DD Singhania
p. 7
“we are currently expecting the production to commence towards the mid of Q2.”
Ajay DD Singhania, page 7 of the filed PDF · View the filing
Q&A highlights
Management's answers to analyst questions, in Parakho's words rather than a transcript. Each row names who answered and carries the verbatim quote it was drawn from.
Management said the reversal was due to an anticipated shortfall in achieving required incremental revenue growth, even though the investment commitment was fulfilled.
Answered by Ajay DD Singhania
Asked by Bala Subramanian: What caused the PLI reversal - was it a localization shortfall or revenue target miss?
p. 6
“we realized that due to the sales shortfall, there is certain anticipated fall in achieving the incremental revenue growth.”
Ajay DD Singhania, page 6 of the filed PDF · View the filing
Management attributed elevated inventory to stocking up on imported compressors ahead of a BIS certification expiry and to prepare for peak season.
Answered by Ajay DD Singhania
Asked by Bala Subramanian: What is driving the elevated inventory and payable days?
p. 7
“the current working capital deterioration in FY26 reflects basically three factors. First, we built inventory in anticipation of the strong summer season for this year.”
Ajay DD Singhania, page 7 of the filed PDF · View the filing
Management said demand has picked up strongly since mid-April with industry-wide inventory normalization and expects about 15% industry growth in Q1.
Answered by Ajay DD Singhania
Asked by Tanay Shah: How is summer demand and margin outlook looking currently?
p. 8
“we are seeing a very strong pull in the trade. And so, the real sale-in in terms of liquidation and further fresh manufacturing orders have started pouring in.”
Ajay DD Singhania, page 8 of the filed PDF · View the filing
Management said commodity and BEE-driven cost increases have largely been passed to brand customers, though some margin stress could occur short term.
Answered by Ajay DD Singhania
Asked by Tanay Shah: What price increases have been passed on and is there margin pressure?
p. 9
“there has been a significant increase in the overall cost and price. And that has also been passed on from our side.”
Ajay DD Singhania, page 9 of the filed PDF · View the filing
Management said cumulative price increases of 15-20% were passed on by end of March due to commodity and BEE rating changes, with further increases in April-May.
Answered by Ajay DD Singhania
Asked by Arshia Khosla: How much price increase has been taken so far?
p. 12
“the overall price increase in the product which has been passed on due to both the reasons, the revised commodities as well as the revised rating levels is 15% to 20% varying between model to model.”
Ajay DD Singhania, page 12 of the filed PDF · View the filing
Management said EBITDA margins have historically been stable in the 7.5-8.25% range excluding one-time items and expect improvement over the medium to long term.
Answered by Ajay DD Singhania
Asked by Arshia Khosla: What is the historical EBITDA margin stability level and outlook?
p. 12
“our gross margins overall are at the EBITDA level if we talk about, barring the one-time adjustments done in Q4, are largely been stable at 7.5 to 8.25 is what has been the stability number for us over the last four years historically.”
Ajay DD Singhania, page 12 of the filed PDF · View the filing
Management said annualized utilization dropped to around 40% from 45-50% previously, with peak season utilization dropping to about 75% from 90%.
Answered by Ajay DD Singhania
Asked by Arshia Khosla: What was RAC capacity utilization in FY26?
p. 13
“So, the last year, they had dropped significantly to, let us say, around 75-odd percent for the peak period of Q1 and Q4.”
Ajay DD Singhania, page 13 of the filed PDF · View the filing
Management said the company holds no inventory of old-rated products as of end December 2025, so there is no liability for EPACK on this front.
Answered by Ajay DD Singhania
Asked by Pawan: Is there risk of inventory write-offs on non-compliant older BEE-rated AC models?
p. 15
“the company doesn't hold any inventory of old rated products on its own. Whatever was produced was shipped out latest by 31st of December 2025.”
Ajay DD Singhania, page 15 of the filed PDF · View the filing
Management said the receivable is from a customer, Gangnam, for Rs. 19.61 crore, is under legal dispute, and the company believes it is recoverable.
Answered by Ajay DD Singhania
Asked by Pawan: What is the nature of the disputed trade receivable flagged by auditors?
p. 15
“We have already filed legal complaints and the company still believes that the receivable is good and the company has a strong chance to recover it.”
Ajay DD Singhania, page 15 of the filed PDF · View the filing
Management said there is always a time lag in passing on price increases, particularly given FX volatility, but commodity hikes are generally passed through each quarter.
Answered by Ajay DD Singhania
Asked by Keshav Lahoti: Is the higher cost entirely passed on, or will margin pressure continue?
p. 16
“there is always a time lag, Keshav, in terms of passing on the price increase and when it is actually realized.”
Ajay DD Singhania, page 16 of the filed PDF · View the filing
Management said EPACK's sourcing mix is roughly in line with the industry at 60% domestic and 40% import.
Answered by Ajay DD Singhania
Asked by Siddharth: What percentage of compressors does EPACK source domestically versus imports?
p. 17
“For us, it is roughly in line with the industry. 60-40, kind of 60% domestic and 40% import.”
Ajay DD Singhania, page 17 of the filed PDF · View the filing
Management said they will advise caution and want to wait for further confirmation from government agencies before recognizing the incentive again.
Answered by Ajay DD Singhania
Asked by Siddharth: Could the reversed PLI incentive be recognized again in future quarters?
p. 18
“We will ask or we will advise a caution before making any such commitment. So, we will still want to wait for another quarter or so before we get the confirmed intent from the agencies on this.”
Ajay DD Singhania, page 18 of the filed PDF · View the filing
Management explained the apparent margin change was largely due to PLI income previously recognized as material margin now being reversed in Q4.
Answered by Ajay DD Singhania
Asked by Rabindra Nayak: What drove the quarter-on-quarter decline in gross margin, mix or cost inflation?
p. 19
“in the previous quarters the accrued PLI revenue and hence that kind of inflates slightly the material margin what we have seen because the PLI income is 100% material margin.”
Ajay DD Singhania, page 19 of the filed PDF · View the filing
Management said inventories built up for compressor stocking ahead of BIS expiry are depleting quickly as order execution in April remains strong.
Answered by Ajay DD Singhania
Asked by Abhijit: How much of the elevated inventory has been depleted since quarter end?
p. 19
“we can definitely, what we are trying to say is that inventories have largely normalized both in our system as well as in the trade.”
Ajay DD Singhania, page 19 of the filed PDF · View the filing
Management said they are not evaluating entering compressors, citing high technical barriers and preferring to focus on core competence.
Answered by Ajay DD Singhania
Asked by Abhijit: Is EPACK considering entering compressor manufacturing given the localization opportunity?
p. 20
“So, no, we are not evaluating getting into compressors. We want to focus on our core competence and the customer risk concentration reduction and the product diversification what we have”
Ajay DD Singhania, page 20 of the filed PDF · View the filing
Management said the new Greenfield facility has ramped up well since January and expects the JV to turn profitable from FY27-28.
Answered by Ajay DD Singhania
Asked by Aryan: When can the Epavo JV be expected to break even given continuing losses?
p. 21
“the management of both the companies is very confident that this year would be a significant year of ramping up. And from FY 27-28 onwards, we will definitely see this company in green.”
Ajay DD Singhania, page 21 of the filed PDF · View the filing
Risks flagged
FY26 RAC industry impacted by unseasonal weather, channel inventory recalibration, commodity inflation and demand deferment
p. 4
“FY26 was a challenging year for the Room Air Conditioner industry, impacted by multiple temporary external factors, including unseasonal weather conditions, channel inventory recalibration, commodity inflation, and demand deferment across parts of the industry.”
Ajay DD Singhania, page 4 of the filed PDF · View the filing
Q4 pressure from revised BEE norms and elevated inventory leading to higher discounting
p. 4
“Q4 also witnessed temporary pressure in RAC segment due to revised BEE norms, uneven seasonal offtake, and elevated inventory levels across the industry, which resulted in higher promotional intensity and discounting during second half of the year.”
Ajay DD Singhania, page 4 of the filed PDF · View the filing
PLI incentive reversal due to shortfall in incremental revenue growth criterion
p. 6
“there is certain anticipated fall in achieving the incremental revenue growth.”
Ajay DD Singhania, page 6 of the filed PDF · View the filing
Forex volatility affecting ability to pass on cost increases in a timely manner
p. 16
“Actually, the volatility around Forex is something which is highly unpredictable, which is definitely something of a greater concern.”
Ajay DD Singhania, page 16 of the filed PDF · View the filing
Disputed trade receivable of Rs. 19.61 crore under legal proceedings
p. 15
“The matter is sub-judice.”
Ajay DD Singhania, page 15 of the filed PDF · View the filing
Working capital deterioration and elevated inventory and payable days
p. 7
“the current working capital deterioration in FY26 reflects basically three factors.”
Ajay DD Singhania, page 7 of the filed PDF · View the filing
Compressor import dependency amid domestic BIS transition timing
p. 7
“one of the very key components which goes into our product and is currently largely import dependent is compressor for which the BIS was expiring in second week of April.”
Ajay DD Singhania, page 7 of the filed PDF · View the filing
Elevated inventory across industry from prior year impacted profitability and utilization
p. 4
“While these factors impacted industry-wide profitability and utilization levels, we continued to execute our longterm strategic priorities.”
Ajay DD Singhania, page 4 of the filed PDF · View the filing
Generated by claude-sonnet-5. Source: the transcript as filed with BSE. We link to the exchange's copy; we do not host transcripts. Parakho is a data and screening tool, not an investment adviser — nothing here is a recommendation to buy, sell or hold.